Unsure where you owe sales or use tax
Run Your Nexus Risk CheckA professional services business creates Texas sales tax nexus when it exceeds 500000 dollars in Texas revenue during the preceding twelve month period or establishes physical presence in the state. Certain professional services may be taxable in Texas depending on classification.
Even if services are not fully taxable, nexus may still require:
Taxability and nexus are separate determinations.
Run Your Nexus Risk CheckTexas taxes certain services, including some data processing and information services.
Taxability depends on:
Not all professional services are taxable, but classification must be evaluated carefully.
Texas applies a 500000 dollar revenue threshold measured over a rolling twelve month period.
For professional services firms, this may include:
Revenue delivered into Texas counts toward economic nexus even if certain services are not taxable.
Before registering or filing, confirm whether your business has created sales tax nexus in California or Texas.
Run Your Nexus Risk CheckProfessional services firms often create nexus through:
Physical presence may create nexus even below the revenue threshold.
If nexus existed but no permit was obtained, exposure may include:
Service firms often overlook nexus because they assume no tangible product is sold.
Rapid growth across states often creates unintended nexus.
If your firm exceeds revenue thresholds or has employees in Texas, evaluate exposure before registering.
Run Your Nexus Risk CheckIdentify potential professional services nexus exposure before penalties escalate.